I just tried downloading a free app from the App Store on my Ipad 2 today and it prompted me for my password which I entered. It then showed the app on the home screen as "waiting..." and it promptly vanished. I tried again (was prompted for my password again) and got the same results. I noticed I had two pending updates (though they show as "free" instead of "update") so I did an Update All. Again I was prompted for my password, which I entered and it switched the to Home screen with the two apps showing as "Waiting..." and then suddenly they reverted back to the way they were. Nothing is downloading on my iPad 2 at all. It is taking my password, but it's not activating or something.
I tried on my iPhone 3GS and it worked without any issue.
I know there was some store problems last night, but I updated an app this morning on my iPad 2 without an issue. I'm also noticing that I can't turn on genius recommendations for apps. It just keeps asking me for my password over and over agian.
Anyone else having issues currently?